The Ghanaian government is poised to assume full operational control of the Damang Mine from Abosso Goldfields Limited (AGL), a subsidiary of Gold Fields Limited, on April 19, 2025. This decision follows the Ministry of Lands and Natural Resources’ refusal to renew AGL’s mining lease, citing several critical shortcomings in the company’s application. However, the government has emphasized its commitment to ensuring a seamless transition that prioritizes the welfare of the mine’s employees, contractors, and service providers. Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, has offered assurances that all existing roles will be maintained, wages will be paid, and contracts honored without interruption. He stressed that the takeover is in the national interest and will be managed with fairness, stability, and community welfare at the forefront.
The government’s decision is rooted in its assessment of AGL’s operational and strategic inadequacies. The company’s application for lease renewal lacked evidence of newly declared mineral reserves and a comprehensive technical or operational plan for the mine’s future. Furthermore, AGL’s shift from active mining to processing stockpiles since 2023, coupled with a projected mine life of only one year, raised concerns about the long-term viability and value of continuing under the existing lease agreement. The absence of exploration budgets further underscored the perceived lack of commitment to the mine’s future development. These factors collectively led the Ministry to conclude that taking control of the Damang Mine was essential to safeguard national interests and ensure the sustainable utilization of resources.
The impending transition will be characterized by a strong emphasis on local content and community engagement. The government’s Local Content Policy will be rigorously applied, prioritizing Ghanaian workers and local businesses in the new operational framework. A dedicated team will be deployed to collaborate closely with staff, contractors, and local leaders to facilitate a transparent and inclusive transition process. The Minister underscored the importance of community involvement in shaping the future of the mine, emphasizing that the takeover is not about displacement but about empowering Ghanaians to manage their own resources.
Security will also be a primary concern during the transition period. Enhanced security protocols will be implemented to ensure the safety of personnel and assets, with strict measures to prevent unauthorized access to the mine. All activities will be conducted under close oversight to maintain order and prevent any disruptions. The government has reaffirmed its commitment to upholding Ghana’s mining laws and respecting international investment agreements throughout the transition process, ensuring a legally sound and transparent takeover.
The Minister’s message to the Damang Mine community has been one of reassurance and unity. He acknowledged the dedication and hard work of the mine’s employees, contractors, and service providers, recognizing them as the backbone of the operation. He emphasized that the transition will prioritize their livelihoods and that their contributions will remain crucial to the mine’s continued success. He called for collective action and support from all stakeholders, urging them to actively participate in shaping the future of the Damang Mine under Ghanaian leadership.
The government envisions a future for the Damang Mine where Ghanaian expertise and resources are at the forefront. The takeover represents a strategic move to ensure the sustainable and beneficial utilization of national resources while safeguarding the livelihoods of those dependent on the mine. The government has pledged transparency and regular communication throughout the transition process, keeping stakeholders informed and engaged as the Damang Mine embarks on its new chapter under Ghanaian control. This transition represents a significant step towards greater national ownership and control of Ghana’s mineral resources, with a focus on maximizing benefits for the country and its people.
